 | | |  Good morning. The U.S. dollar is in decline. The latest example of this is the rise of a "BRICS currency" bloc. Developing nations such as Brazil, Russia, India, China, and South Africa are working on a trading currency that could compete with the dollar, and also the Euro. The group has now extended an invitation to additional nations, the most important of which is oil-rich Saudi Arabia.
While it's unlikely that the dollar will cease to be used in global trade, it's clear that other countries want alternatives for their bilateral trade. These moves away from the dollar are slow, but they are steady. It's possible the trend could reverse, but for that to happen, the dollar would have to start looking more attractive for investors.
For now, U.S. investors may want to look at international diversification. They can do that by buying industry-leading global companies headquartered in other parts of the world. That will add some diversification out of the dollar, and can help protect from currency fluctuations – good or bad – over time.
Now here's the rest of the news: | | | | | |
| | |  | DOW 34,559.98 | +0.62% | | | | | S&P 4,433.31 | +0.63% | | | | | NASDAQ 13,705.13 | +0.84% | | | | | *As of market close | | | • | Markets moved higher on Monday, extending Friday's gains. | | | • | Oil rose 0.4 percent, closing at $80.11 per barrel. | | | • | Gold also rose 0.4 percent, last going for $1,948 per ounce. | | | • | Cryptocurrencies traded flat, with bitcoin at $25,992 at the stock market close. | | | | | | | |
| | | Buy Industry Leaders When They're Hated by the Market | | | | While most stocks have pulled back in the past month, they still look strong relative to last year's lows. However, some companies have specific issues at play that are keeping them from being near their highs.
Understanding why a company can be out of favor with the market can lead to a great investment opportunity, if bought at the right time. Companies facing temporary legal problems, for instance, could be solid winners when they rebound.
» FULL STORY | | | | |
| | Insider Activity Report: Overstock.com (OSTK) | | | | William Nettles, a director at Overstock.com (OSTK), recently bought 10,385 shares. The buy increased his stake by 25 percent, and came to a total cost of $50,644.
This marks the first insider buy at the company since last November, when Overstock's CEO bought 4,000 shares. Two company directors have sold shares following the exercise of stock options, and the company's CTO and General Counsel have also sold shares this year.
» FULL STORY | | | | |
| | Unusual Options Activity: Plug Power (PLUG) | | | | Fuel cell developer Plug Power (PLUG) is down over 70 percent in the past year as EV related stocks have fallen out of favor. One trader sees a further decline in the next six months.
That's based on the March 2024 $5 puts. With 199 days until expiration, 5,003 contracts traded compared to a prior open interest of 239, for a 21-fold rise in volume on the trade. The buyer of the puts paid $0.35 to make the bearish bet.
» FULL STORY | | | | |
| | • | Student Loan Repayments Resume
Interest on $1.6 trillion in federal student loans will restart on Friday, September 1. The first payments will be due in October, the first time in over three years that repaying student loans is required since payments were suspended during the pandemic. Borrowers and lenders are reporting some confusion as payments are about to restart. | | | | • | Consumer Spending Likely to Slow
Traders expect the latest consumer spending data this week to show a slowdown following months of robust spending that's been higher than expected. The move will likely be a small slowdown that avoids a big selloff in markets, but will also show how rising interest rates are finally starting to spread to consumer spending. | | | | • | Apple Leads on Smartphone Sales
When it comes to phone sales, smartphones are leading, indicating strong consumer demand for high-end devices. Apple (AAPL) is the leader in global smartphone shipments for August, with the iPhone 14 Pro Max leading in total sales. The 14 model is the company's most expensive option, beating out last year's sales winner, the iPhone 13. | | | | • | China Eases Trading Taxes
China is reducing its taxes on trading, in a move designed to help boost the country's capital markets. The levy charged on stock trades will be cut in half, from 0.1 percent to 0.05 percent. This marks the first reduction in trading taxes in China since 2008. | | | | • | XPeng to Buy Didi EV Assets for $744 Million
Chinese electric vehicle manufacturer XPeng (EXPV) is acquiring the EV assets of ride-sharing giant Didi (DIDIY) for $744 million. The assets will become a new brand under the XPeng umbrella dubbed "Mona," and is scheduled to launch in 2024. | | |
| | | | TOP | | | BSX | 5.664% | | | | MMM | 5.094% | | | | WDC | 4.849% | | | | WBD | 3.586% | | | | GNRC | 3.498% | | | | BOTTOM | | | TECH | 2.233% | | | | MOS | 1.847% | | | | ABT | 1.78% | | | | DXCM | 1.643% | | | | RCL | 1.529% | | | | |
| | |  | | We're getting the data that we need to see as inflation moves from those 9% levels down to 3%. And I think at this point, the question really just revolves around how much pain is the Fed willing to further inflict on the economy to get inflation from 3% to 2%. | | - Timothy Chubb, CIO of Girard, on the latest statements from the Federal Reserve, indicating that further interest rate hikes may be necessary in order to get inflation down to the central bank's target. | |
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